The Egyptian capital market is one of the fundamental pillars of the national economy, as it provides a platform for mobilizing and channeling savings toward productive investments through the issuance and trading of securities, such as equities, bonds, and sukuk, across various sectors, thereby contributing to the achievement of sustainable economic growth.
The Financial Regulatory Authority (FRA) is the competent body responsible for regulating and supervising non-bank financial markets in Egypt, foremost among them the capital market, which represents a key driver of economic development and investment attraction. The Authority performs a dual role that combines regulatory and service-oriented dimensions, reflecting its comprehensive vision of striking a balance between protecting the market and investors on one hand, and facilitating the growth and development of economic activity on the other.
From a regulatory perspective, the FRA is responsible for establishing the legislative and regulatory frameworks governing the capital market, monitoring the compliance of companies and market participants with applicable laws and standards, and combating violations and market abuses that may undermine market integrity or harm investors’ interests. This supervision covers disclosure and transparency, fair trading practices, trade surveillance, and corporate governance, with the objective of ensuring market efficiency and fairness.
From a services-oriented perspective, the Authority’s responsibilities extend to facilitating the business environment by providing a range of services to investors and companies, including simplifying licensing and listing procedures, offering electronic service platforms, enabling financial technology solutions, and promoting investor education and awareness. The FRA also supports innovation and the diversification of investment instruments, which enhances the attractiveness of the Egyptian market and strengthens its regional and international competitiveness.
The integration of the regulatory and services-oriented roles is central to the Authority’s performance. The FRA seeks to achieve effective oversight without imposing undue burdens on investors or institutions, offering instead a flexible and balanced regulatory model that supports sustainable growth and safeguards the rights of all market participants.
Capital Market Activities
The Egyptian capital market encompasses a range of key activities, most notably:
- Trading in securities (equities, bonds, and sukuk)
- Portfolio management and investment funds
- Promotion and underwriting of public offerings
- Financial valuation and the preparation of fair value studies
- Central depository and registry activities carried out by Misr for Central Clearing, Depository and Registry (MCDR), aimed at facilitating the transfer of ownership of securities and ensuring safe and efficient settlement
Governing Laws and Regulations
The capital market is governed by several laws and regulations, most notably:
- Capital Market Law No. 95 of 1992 and its Executive Regulations
- The Central Depository and Registry Law and its Executive Regulations
- Regulatory decisions issued by the FRA
For capital market legislation via the Legislative Portal, (click here)
Governance and Compliance
Corporate governance plays a vital role in enhancing the investment environment and delivering multiple benefits to companies and their shareholders. Through its mechanisms, governance contributes to improving the efficiency of financial markets, most notably through compliance with accounting and auditing standards, the establishment of audit committees, and the implementation of internal and external audit functions. The effective and integrated application of governance mechanisms enhances disclosure and transparency, providing useful financial information to all market stakeholders, strengthening stakeholder confidence, and improving the efficiency of the securities market.
In this regard, the FRA works to entrench the principles of transparency, disclosure, and sound corporate governance through:
- Requiring companies to make periodic disclosures of financial statements and material information
- Monitoring institutions’ compliance with professional rules and standards
- Combating fraud, market manipulation, and money laundering within the market
- Promoting a safe investment environment that protects investors’ rights.
This is in accordance with FRA Board of Directors Decision No. (100) of 2020 on the Corporate Governance Rules applicable to entities operating in non-bank financial activities.
Capital Market Professionals
The FRA grants licenses to practitioners and professionals in the capital market in accordance with specific requirements. These licenses include:
- Independent Financial Advisor
- Investment Manager
- Promoter and Underwriter
- Investor Relations Officer
- Internal Compliance Officer
- Custodian
- Accredited Financial Valuer
Obtaining these licenses is subject to passing approved professional examinations and complying with professional rules and ethical standards.
Capital Market Data According to the FRA Annual Report 2024
The value of securities issuances (equities, bonds, and sukuk) in the primary market declined to EGP 535.5 billion in 2024, compared to EGP 601.7 billion in the previous year, representing a decrease of 11%. This was primarily attributable to a 6.7% decline in equity issuances (establishment, capital increases, reductions, and amendments), which amounted to approximately EGP 479.6 billion in 2024 compared to around EGP 514.1 billion in the previous year. Excluding the impact of the decline in capital reductions and amendments, the value of establishment and capital increase issuances rose by 16%, reaching approximately EGP 385.7 billion in 2024, compared to around EGP 332.5 billion in the previous year.
Issuances of non-equity securities (securitization and corporate bonds) also declined by 36.2% in 2024 compared to the previous year. This was mainly due to the increase in the Central Bank of Egypt’s benchmark interest rates from 9.75% in March 2022 to 27.75% in March 2024, which led to a reduced investor demand for fixed-income financing instruments owing to their higher cost, despite expectations of future interest rate cuts amid declining inflation.
Total trading value reached EGP 14,333.4 billion in 2024, compared to EGP 3,222.8 billion in 2023, representing an increase of 344.8%. This surge was driven by a significant rise in the trading value of government securities (including Treasury bills), following the commencement of Treasury bill trading at the end of September 2023. Trading in government securities increased by 428%, reaching EGP 13,135.1 billion in 2024 compared to EGP 2,487.6 billion in 2023. Equity trading value also rose to EGP 1,198 billion in 2024—the highest level in the history of the Egyptian Exchange—compared to EGP 735.1 billion in 2023, representing an increase of 63%.
In comparison with global exchanges, the EGX70 EWI Index ranked among the top-performing indices worldwide, recording a gain of 48.77%, followed by the EGX100 EWI Index with an increase of 42.35%. The EGX30 Index also rose by 19.47%, outperforming the stock exchanges of London, Japan, and Paris. At the Arab regional level, it outperformed the exchanges of Oman, Bahrain, Saudi Arabia, and Abu Dhabi, all measured in Egyptian pounds.
Market capitalization of listed equities increased as a result of higher share prices, reaching EGP 2,170 billion at the end of 2024, up from EGP 1,720 billion at the end of 2023.
During 2024, the FRA approved the establishment of seven new investment funds, in addition to three new issuances under existing multi-issuance funds. Accordingly, the total number of investment funds operating in Egypt reached 154 by the end of 2024, comprising 145 open-ended funds and nine closed-ended funds.
The net market value of units issued by all investment funds amounted to approximately EGP 155.9 billion at the end of 2024 (excluding funds currently under subscription).
Last modified: December 17, 2025